Bachem (BANB) H2 2024 earnings summary

Executive summary

• Achieved CHF 605.3 million in revenue for 2024, up 4.8% year-over-year (+5.6% in local currencies), with strong operational performance and global capacity expansion.

• EBITDA reached CHF 176.3 million (+5.7%), with a margin of 29.1%.

• Net income increased 7.5% to CHF 120.2 million; EPS rose 7.1% to CHF 1.60.

• All product categories grew: Research & Specialties (+7.5%), CMC Development (+3.0%), and Commercial API (+5.8%), with commercial API as the largest segment.

• Added 201 new FTEs, focusing on strengthening organizational capabilities for future growth.

Financial highlights

• Sales: CHF 605.3 million (+4.8% year-over-year), EBITDA: CHF 176.3 million (+5.7%), EBIT: CHF 133.0 million (+2.8%).

• Net income: CHF 120.2 million (+7.5%), operating cash flow: CHF 146.3 million; CapEx spending was CHF 292.2 million.

• Dividend increased by CHF 0.05 to CHF 0.85 per share; payout of CHF 60.0 million.

• Inventory rose to CHF 104 million, largely pre-financed by customers; prepayments from customers totaled CHF 286.4 million.

• Ended year with CHF 95.2 million in cash and a 72% equity ratio, with no external bank loans.

Outlook and guidance

• 2025 sales growth expected at 10%-15% in local currency, with EBITDA margin in the high 20s (28-29%).

• 2026 target remains CHF 1 billion in sales and EBITDA margin above 30%, supported by new capacity and long-term contracts.

• CapEx for 2025 projected above CHF 400 million, stabilizing at that level.

• No substantial sales from Building K expected in 2025; major CapEx projects to conclude.